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Corporate Law

CM Advocates > Corporate Law

Corporate Insolvency: Administration-Death by a Thousand Cuts OR Corporate Rescue Measure?

corporate insolvency

An Administration Order can only be granted by the Insolvency Court once the conditions under Section 531 of the Insolvency Act are satisfied, to wit, a company is unable to pay its debts and if the order is made, the company is reasonably likely to achieve an objective of the administration....

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LEGAL ALERT: The High Court sets good precedent for the separation of powers among the executive from usurping the powers of the Commissioner of Domestic Taxes.

[vc_row triangle_shape="no"][vc_column][vc_column_text]The High court Vide a ruling dated 16th September 2022 in the matter of REPUBLIC VS COMMISSIONER OF DOMESTIC TAXES EX PARTE LONDON DISTILLERS (K) LIMITED, 2022, determined that Treasury or in this case the Ministry of Finance has no legal right to approve abandonment of taxes without prior recommendation from the Commissioner. In this Alert we discuss the salient arguments by the parties to the dispute and our view on the ruling. Brief facts London Distillers Ltd.’s Case (Ex parte Applicant) In a letter dated 15th September 2021, London Distillers applied to the Cabinet Secretary for National Treasury and Planning for the...

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The Duties of Directors in a Financially Distressed or Insolvent Company in Kenya

As therein indicated, under section 143 of the Companies Act, a director must act in the way which he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members (shareholders) as a whole. ...

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The Advantages of Having a Shareholders’ Agreement

A shareholders’ agreement is a formal agreement between all or some of the shareholders in a company. A shareholder agreement is usually considered alongside the company’s articles of association, which defines the relationship between the shareholders and is in law considered a contract inter se between the shareholders. ...

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